Whether private lending is illegal or not depends on the specific circumstances: in violation of state regulations, without the approval of the regulatory authorities, or beyond the scope of business, it regularly provides loans to unspecified social objects for the purpose of making profits and disrupting the order of the financial market. If the circumstances are serious, it will be convicted and punished for the crime of illegal business. Therefore, in this case, entrusted loans are illegal. Under any of the following circumstances, if the circumstances are serious, but the actual annual interest rate of a single illegal lending behavior does not exceed 36%, it will not be counted in conviction and sentencing: 1, the accumulated amount of illegal lending by individuals is more than 2 million yuan, and the accumulated amount of illegal lending by units is more than 10 million yuan; 2, personal illegal income accumulated in more than 800 thousand yuan, the unit illegal income accumulated in more than 4 million yuan; 3. The number of illegal lending objects of individuals is above 50, and the number of illegal lending objects of units is above 150; 4. Causing serious consequences such as death or mental disorder of the borrower or his close relatives. Sentencing standard for the crime of illegal business operation: 1. Whoever commits this crime shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall be fined not less than one time but not more than five times the illegal income; 2. If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times the illegal income, or his property shall be confiscated. Legal basis: Article 225 of the Criminal Law of People's Republic of China (PRC) violates state regulations and commits one of the following illegal business operations, disrupting market order. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or solely be fined not less than one time but not more than five times the illegal income; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years, and shall also be fined not less than one time but not more than five times the illegal income or his property shall be confiscated: (1) operating a franchise or monopoly commodity or other commodities whose trading is restricted by laws and administrative regulations without permission; (2) buying and selling import and export licenses, import and export certificates of origin and other business licenses or approval documents stipulated by laws and administrative regulations; (three) without the approval of the relevant competent departments of the state, illegally engaged in securities, futures, insurance business, or illegally engaged in fund payment and settlement business; (four) other illegal business activities that seriously disrupt the market order.
Second, is it legal for private lending to pay 2 points of interest?
Legally, private lending has two points of interest, that is, the monthly interest rate is 2% and the annual interest rate is 2% = 24%. It belongs to the highest interests supported by law and belongs to legal lending.
Legal basis: Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases.
Article 26 If the interest rate agreed between the borrower and the borrower does not exceed the annual interest rate of 24%, and the lender requests the borrower to pay interest at the agreed interest rate, the people shall support it.
The interest rate agreed between the borrower and the borrower exceeds the annual interest rate of 36%, and the interest agreement in excess is invalid. Where the Borrower requests the Lender to return the part of the interest paid that exceeds 36% per annum, the Borrower shall
3. Is private mortgage illegal?
Hello!
If the interest you get is not more than twice the bank loan in the same period, and the loan procedures are complete, it is not illegal and protected by law. The interest is too high, the law does not protect you, and he can't help it if he doesn't pay you back.
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4. Is private mortgage illegal?
Not illegal. Lending between individuals is allowed, and interest can be charged.